Tony Robbins’ Wealth-Building Tips Seem Pretty Useless

Don’t lose money. I’m not kidding, that’s the first tip. Would anyone advise “Lose money”? No. So this “tip” is useless.

Look for investments in which rewards far outweigh risks. Would anyone advise “Look for investments in which risks far outweigh rewards’? No. Robbins recommends using “the 5-to-1 rule,” in which the potential returns on an investment are 5 times greater than the potential losses. Why 5? Why not 10? Or 100? Where do you find these investments? I have no idea.

Don’t overpay taxes. Would anyone advise “Overpay taxes”? No.

Diversify. Would anyone advise “Don’t diversify”? Possibly. There’s a couple of schools of thought on diversification: 1) Don’t put all your eggs in one basket; and 2) Put all your eggs in one basket, then watch that basket. So there’s a tip for you: Diversify.

Watch out for mindless spending. Would anyone advise “Spend mindlessly”? No. Robbins says if you spend $40 a week on restaurant meals, consider inviting friends over for a low-cost dinner at home instead. “In a year, you’ll have saved $2,000. If you invest that $2,000 every year, in 40 years you’ll have half a million dollars.” No, in 40 years you’ll have $80,000. Maybe. Given some assumptions about your rate of return, you might have half a million dollars, but on the other hand, you might make some bad investments and wind up with nothing.

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